Shell Strikes $16B Montney Deal; BP Posts Strong Q1 on Trading

Shell plc has entered a definitive agreement to acquire Canadian Montney shale producer ARC Resources Ltd. in a deal with an enterprise value of approximately $16.4 billion, according to Rigzone. The transaction, announced Monday, will be funded with $3.4 billion in cash and $10.2 billion in Shell shares. It is expected to close in the second half of 2026, pending approvals.

The acquisition combines ARC's more than 1.5 million net acres with Shell's existing ~440,000 net acres in the Montney formation, adding ~2 billion barrels of oil equivalent in proved plus probable reserves. The deal immediately adds 370,000 barrels of oil equivalent per day of production, with roughly 40 percent being liquids. Shell stated the move increases its exposure to low-cost, low-carbon intensity shale gas and liquids in Canada and supports its aim to sustain material liquids production of around 1.4 million barrels per day towards 2030.

Separately, BP PLC reported a first-quarter underlying replacement cost profit of $3.2 billion for Q1 2026, more than double the figures from the prior quarter and the same period last year, Rigzone reported Tuesday. The company cited an "exceptional" contribution from oil trading and increased production in the Gulf of America and from its U.S. onshore business, bpx Energy, which helped keep overall production steady at 2.34 million barrels of oil equivalent per day.

BP CEO Meg O'Neill, who took over at the start of Q2, said the quarter showed "strong operational and financial delivery." The company maintained its dividend at 8.32 cents per share. However, net debt climbed quarter-on-quarter to $25.31 billion.

In a move highlighting the growing power demands of data centers, Meta Platforms Inc. has signed agreements to reserve up to 1 gigawatt of capacity from a space-based solar project and a separate 1 GW commitment for ultra-long-duration energy storage, Rigzone reported Monday. The tech giant is the first to agree to a potential purchase from Overview Energy Inc.'s space solar system, which aims for commercial power delivery by 2030. Meta also partnered with Noon Energy Inc. for battery storage to support its artificial intelligence infrastructure.

For Bakken operators, Shell's major acquisition in the neighboring Montney basin underscores the continued strategic value major oil companies place on large-scale, low-cost North American shale assets with a liquids component. BP's performance, driven by its trading division and sustained U.S. onshore output, reflects a market environment where operational efficiency and trading prowess are key profit drivers. Meanwhile, the significant power offtake agreements by Meta signal the intensifying competition for reliable and novel energy sources, which could have long-term implications for regional energy markets and infrastructure.